the business behind the business plan
TRANSCRIPT
David Holdford, RPh, MS, PhD, FAPhA
Professor, Department of Pharmacotherapy & Outcomes Science
Virginia Commonwealth University School of Pharmacy
LEARNING OBJECTIVES
1. Know the importance of the business behind the business model/plan
2. List details about the business behind the business model/plan
3. Assess the coherence of a model/plan with business’s mission, history, people, positioning, portfolio, and markets served
Organization's Operation - Specific
background about the organization where the product/service will be
provided
Strengths, Weaknesses - Your capabilities to
serve targeted customers
Service/ Product – What you are offering
Secondary Customers - all other people you
may serve
Partners - People or businesses who can
help you serve customers Value Proposition - The
case you make to customers
Opportunities, Threats -Potential for success or
failure in the market
Competitors - People or businesses who
compete for your customers
Primary Customers -People or businesses
you want to serve
Costs - Financial and nonfinancial inputs
needed to serve customers
Pricing & Reimbursement - Sources of revenue to sustain your value proposition
Communication Plan -How your value proposition is
communicated to customers
Implementation - Details about critical factors for success of business
Business Model Canvas for Pharmacy Services
Lean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under the Creative Commons Attribution-Share Alike 3.0 Un-ported License.
KNOWING THE BUSINESS BEHIND A VALUE PROPOSITION HELPS TO UNDERSTAND ITS POTENTIAL FOR SUCCESS AND SUSTAINABILITY
A MISMATCH BETWEEN THE BUSINESS AND THE VALUE PROPOSITION IS A RED FLAG FOR INVESTORS AND OTHER STAKEHOLDERS
The Business Description…
May describe just an element of the overall business. The ‘business’ may detail:
a pharmacy department within a large hospital or other business,
an individual pharmacy, group of pharmacies, or business unit within a large business,
a network of pharmacies or an association, or
any organization or entity offering the value proposition.
The Business Section of the Business Plan…
Tells what the business is and wants to be
Provides its backstory
Documents the business's legitimacy and capability to offer the value proposition
PEOPLE DON’T INVEST THEIR TIME, MONEY, EMOTIONAL CAPITAL, AND EFFORT IN BUSINESSES.
THEY INVEST IN THE PEOPLE AND STORIES BEHIND THOSE BUSINESSES.
WHAT IF I TOLD YOU THAT THE APP WAS DEVELOPED BY TOP PROGRAMMERS AT THE AMAZON CORPORATION AND IT WILL RECEIVE THE FULL BACKING OF JEFF BEZOS, AMAZON’S CEO?
AND THE BUSINESS DESCRIPTION CAN MAKE A DIFFERENCE IN THE SUCCESS OR FAILURE OF A MODEL/PLAN PITCH TO STAKEHOLDERS
Details about the business model depend on whether the business is a:
Startup or an established enterprise
Single product or multi-product operation
Sole proprietor, partnership, or investor owned endeavor
Small, medium, or large organization
Local, regional, or global firm
The descriptive information of the business behind the model might include:
1. The organization’s name
2. The type of business
3. Its mission
4. Its history
5. How it positions itself
6. Key personnel
7. Its portfolio
8. The market served
DETAILS ABOUT MOST BUSINESSES CAN BE FOUND ON THEIR WEBSITES, ANNUAL REPORTS, AND PRESS ARTICLES ABOUT THEM
FOR EXAMPLE
WHAT IF YOU NEEDED TO DESCRIBE FRED’S PHARMACY IN A BUSINESS PLAN FOR A PHARMACIST DIRECTED MANAGEMENT PROGRAM?
1. organization’s name
2. type of business
3. its mission
4. how it positions itself
5. key personnel
6. its portfolio
7. market served
HOW MANY OF THE FOLLOWING CAN BEFOUND ON FRED’SWEBSITE?
History
Fred's Pharmacy traces its history back to 1947, when it opened its original store in Coldwater, Mississippi.
Key Personnel
The key personnel behind the diabetes management program depends on whether the program is being offered at one store or company wide
This information may not be readily available on the website but can be easily attained by contacting Fred’s
The business description allows stakeholders to judge whether the proposed diabetes management program is right for Fred’s Pharmacy
History
Fred's Pharmacy traces its history back to 1947, when it opened its original store in Coldwater, Mississippi.
It is consistent with its history?
Key Personnel
The key personnel behind the diabetes management program depends on whether the program is being offered at one store or company wide
This information may not be readily available on the website but can be easily attained by contacting Fred’s
Are the people right for a diabetes management program?
If the answer is yes to all of these questions, stakeholders will be more likely to support the proposed diabetes management program at Fred’s Pharmacy